Uganda Government Urged to Repossess Libyan Shares in National Housing

• The Ugandan government is considering repossessing the 49% shares held by Libya in National Housing and Construction Company.
• Repossession could help lift sanctions that have crippled the state housing entity and attract more investors to the sector.
• Government needs to inject Shs 3 trillion, with an annual allocation of Shs 500 billion, to enable the construction of over 5,000 housing units every year.

The continued presence of these shares has led to financial institutions and development partners hesitating to fund the company, resulting in a significant impact on budget allocations and investor confidence.

The Ugandan government's decision to consider repossessing the 49% shares held by Libya in National Housing and Construction Company is a critical step towards lifting sanctions that have crippled the state housing entity. The continued presence of these shares has led to financial institutions and development partners hesitating to fund the company, resulting in a significant impact on budget allocations and investor confidence. In fact, the Ministry of Lands, Housing and Urban Development estimates that government needs to inject Shs 3 trillion, with an annual allocation of Shs 500 billion, to enable the construction of over 5,000 housing units every year. This is not just a matter of economic necessity but also a basic human need, as housing is a fundamental right for low and middle-income Ugandans. The Ministry's proposal to repossess the Libyan shares is a pragmatic solution that can help address these challenges and ensure sustainable development in the housing sector.

The sanctions imposed on National Housing and Construction Company due to its Libyan stake have far-reaching consequences, affecting not only budget allocations but also investor confidence. The Ministry of Lands, Housing and Urban Development has expressed frustration that the Ministry of Finance ignored their advice and imposed new taxes on construction materials in the Financial Year 2026/2027, further exacerbating the situation. This has resulted in increased costs for ordinary Ugandans, making houses even more expensive and inaccessible to those who need them most. The Committee's observation that UIA must reserve land for worker housing in all industrial parks is a crucial step towards addressing this issue and ensuring that workers have access to affordable housing.

The Parliamentary Committee on Lands has directed the Ministry to formally table a Cabinet memo on the repossession of the Libyan shares and provide a roadmap for increased funding to the housing sector. This is a significant development that can help unlock the potential for sustainable development in the housing sector. Lawyers advising clients with investments in Uganda's National Housing and Construction Company should monitor government efforts to repossess the Libyan shares, which could impact their investments and potentially lead to increased funding for the company. The Ministry's proposal to repossess the Libyan shares is a critical step towards lifting sanctions and ensuring that the housing sector receives the necessary funding to meet the needs of low and middle-income Ugandans.

Lawyers advising clients with investments in Uganda's National Housing and Construction Company should monitor government efforts to repossess the Libyan shares, which could impact their investments and potentially lead to increased funding for the company.

Source: Original reporting via Nile Post